Pakistan : Supreme Court overturns Rs44 billion fine on sugar mills imposed by CCP
The Supreme Court of Pakistan has overturned a Rs 44 billion fine against the country’s sugar mills, declaring both the CCP’s 2021 casting-vote ruling and a 2025 appellate order unlawful. The bench found procedural violations but allowed the CCP to restart proceedings from its 2020 notices, keeping future enforcement options open.
The Supreme Court has annulled a Rs44 billion fine imposed by the Competition Commission of Pakistan (CCP) on the country’s sugar mills, ruling that both the original decision and the subsequent appellate order were unlawful.
According to media reports, the decision came from a division bench comprising Justice Shakeel Ahmed and Justice Aamer Farooq, who set aside the May 21, 2025 ruling of the Competition Appellate Tribunal and the CCP’s August 13, 2021 “casting vote” decision.
The dispute began in November 2020, when the CCP issued show-cause notices to the Pakistan Sugar Mills Association (PSMA) and sugar mills nationwide, accusing them of violating Section 4 of the Competition Act, 2010, which prohibits cartel-like behaviour.
A four-member CCP panel heard the case, but the decision was split evenly in August 2021. Two panel members, including then-chairperson Rahat Kaunain Hassan, found the mills guilty, while two others called for a fresh inquiry.
Hassan cast a deciding vote in favour of her opinion, which led to the imposition of the multibillion-rupee fine, a move that triggered controversy.
The sugar mills challenged this decision before the Competition Appellate Tribunal, which in May 2025 ordered a new hearing by a member who had not signed any of the earlier opinions.
The mills argued before the Supreme Court that the tribunal’s directive violated the Competition Act and its own rules. The bench agreed with the mills’ position, striking down both the tribunal’s order and the CCP’s casting-vote decision.
While the fine was annulled, the Court left the CCP free to initiate fresh proceedings based on the original 2020 notices.
Counsels Abdul Sattar Pirzada, Shehzad Atta Elahi, and Sikandar Bashir Mohmand represented the sugar mills, while the CCP was represented by Asma Hamid.
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Source : Profit Pakistan Today
